Zurich Takaful Car Insurance: Is It Worth It?

Many Malaysian car owners are moving from conventional car insurance to motor takaful, and Zurich is one of the names that often comes up. If you are thinking about switching, you probably want to know one thing: is Zurich Takaful car insurance actually worth it?

Zurich’s motor takaful plan, Z-Driver Takaful, is a Shariah-compliant plan that can be a good fit if you want flexible add-ons, discounts for lower-risk drivers and free cover for extra named drivers. This guide explains what it covers, how the contribution works and who it suits best. You can also compare car insurance and takaful quotes on BJAK before you decide.

What is Zurich Takaful car insurance?

Zurich Takaful car insurance refers to Z-Driver Takaful, a motor takaful plan from Zurich General Takaful Malaysia Berhad. The operator is licensed under the Islamic Financial Services Act 2013 and regulated by Bank Negara Malaysia.

Motor takaful works differently from conventional insurance. You pay a contribution instead of a premium, and part of it goes into a shared fund that helps participants who suffer a loss. Takaful is open to both Muslims and non-Muslims.

According to Zurich’s Product Disclosure Sheet (PDS), Z-Driver Takaful uses several Shariah contracts, including:

• Tabarru’: part of your contribution is a donation to the takaful fund that pays claims.
• Wakalah: Zurich manages the fund as an agent and charges a Wakalah fee for this.
• Hibah: if the fund has a surplus, a share may be given back to eligible participants.
• Qard: if the fund runs short, the operator provides an interest-free loan, which is repaid from future surpluses.

For a closer look at where your money goes, read our guide on what happens to your motor takaful contribution.

What does Z-Driver Takaful cover?

Z-Driver Takaful is available as third-party, third-party fire and theft, or comprehensive cover. Most car owners choose comprehensive, as it is the only option that also protects your own car.

Type of cover	What it protects
Third party	Your liability for injury, death or property damage you cause to others
Third party, fire and theft	Third-party liability, plus loss or damage to your car from fire or theft
Comprehensive	Third-party liability, plus loss or damage to your car from accidents, fire or theft

Not sure which type you need? Our guide to comprehensive car insurance explains the differences in more detail.

Key benefits of Zurich Takaful car insurance

Here are the main benefits Zurich lists for Z-Driver Takaful on its official product page. Some are discounts, while others are paid add-ons you can choose.

Discounts for lower-risk drivers

Zurich offers a discount of up to 10% on your motor contribution if you fall into a lower-risk driver segment. Zurich gives cautious drivers, lady drivers and SUV drivers as examples.

Up to 20% off with voluntary excess

You can choose a voluntary excess, which is an amount you agree to pay yourself when you make a claim. In return, you get a lower contribution. Zurich’s PDS lists these discounts:

Voluntary excess	Discount on contribution
RM1,000	5%
RM2,000	10%
RM3,000	15%
RM5,000	20%

A higher voluntary excess lowers your contribution, but it also means you pay more when you claim. Choose an amount you can comfortably afford.

Free cover for extra named drivers

There is no limit to the number of complimentary named drivers you can add for private use. This suits families where several people drive the same car. Keep in mind that a compulsory excess of RM400 may apply if the driver is not named in the certificate, is under 21, or holds a provisional (P) or learner (L) licence. Our article on all drivers coverage explains how this works.

Flood towing and cleaning cover

For an extra contribution starting from RM10 a year, Zurich reimburses up to RM5,000 for towing and cleaning your car after flood damage. Damage to the car itself from floods and landslides needs a separate special perils add-on, which is listed in the PDS.

Personal accident cover

Zurich offers personal accident (PA) cover of up to RM175,000 per car, starting from RM15 a year. It protects you, your family and other passengers in your car. This is a paid option, not a free benefit.

Waiver of betterment

When an older car is repaired with new original parts, you may be asked to pay part of the cost, known as betterment. With Zurich’s waiver of betterment, you can replace damaged parts with new original parts at no extra cost. Learn more in our guide to waiver of betterment.

Enhanced windscreen cover

With the enhanced windscreen cover, your windscreen protection does not end after a replacement claim. The claim amount is deducted from your sum covered, and you can choose to reinstate it by paying a pro-rated contribution.

24-hour roadside assistance

Zurich General Takaful customers can call the 24-hour roadside assistance hotline at 1-300-88-5566 for help with breakdowns and accidents. Towing limits depend on your certificate schedule, so check the details when you buy.

How much does Zurich Takaful car insurance cost?

There is no fixed price. Your contribution depends on your car’s sum covered, make, model and age, your No Claim Discount (NCD), where you live and the add-ons you choose.

As a guide, the sample in Zurich’s PDS shows a car covered for RM50,000, with no NCD and some add-ons. The total payable was RM2,429.63 a year, including the base contribution, add-ons, SST and RM10 stamp duty. Your own contribution will be different, so the best way to know is to get a quote.

The same PDS example shows a Wakalah fee of 29.5% of the gross contribution. This fee covers commission and management expenses.

Is Zurich Takaful car insurance worth it?

It depends on what you need. Z-Driver Takaful can be a good choice if you:

• Prefer a Shariah-compliant plan for your car
• Have several family members who drive the same car
• Are a careful driver who may qualify for a lower-risk discount
• Are happy to take a higher voluntary excess in exchange for a lower contribution
• Want to build your own cover with add-ons such as flood cover, PA or waiver of betterment

It may be less suitable if you want many benefits bundled in for free, as several of Zurich’s best features are paid add-ons. Other takaful operators include different free benefits, so compare them side by side. Our article on comparing motor takaful in Malaysia looks at Takaful Malaysia, Takaful Ikhlas and Zurich together.

If you use your car for e-hailing, Zurich also offers an e-hailing endorsement. Read our guide on whether motor takaful covers e-hailing drivers before you start driving for a platform.

What to check before you buy

1. Sum covered: insure your car at its market value so you are not underinsured when you claim.
2. Add-ons: decide which add-ons you really need, such as flood cover, windscreen or PA.
3. Drivers: name everyone who drives your car to avoid the RM400 compulsory excess.
4. Claims process: Zurich asks you to notify it of an incident within seven days.
5. PDS and certificate wording: read the latest documents, as benefits and limits can change.

Compare Zurich Takaful with other plans on BJAK

Zurich Takaful car insurance offers flexible add-ons, useful discounts and unlimited free named drivers for private use. Whether it is the best choice for you depends on your car, your drivers and the cover you want. You can see Zurich’s add-ons and documents on our Zurich car insurance page.

Before you renew, get a free car insurance quote on BJAK and compare Zurich Takaful with other takaful and insurance plans in one place.